The Economic Perspective 29 August 2025

The Latest Trending Economic News Curated for You by Balmoral Group Australia

Good morning dear readers,

This week we’re exploring emissions and broader reform. Both Australia and China have emissions plans in the works, with China unveiling their timeline to tackle carbon markets using “Carbon Emissions Allowances”, which are allocated tokens to be exchanged on the market, and the imminent announcement of Australia’s 2035 emissions targets sparks discussion on policy possibilities and the need for speedy implementation. Next, far-reaching reforms to Australia’s EPBC Act are finally coming to play, establishing new national guidelines and a Federal Environmental Protection Agency within the year. Finally, a new report from CSIRO illustrate efforts to incorporate AI models in the insurance sector, aiming to trim down steadily growing costs.

Please feel free to forward this to anyone you think would be interested. If you’d like to view previous editions, please click here and navigate the News tab, or to subscribe, please click here!

Hope you enjoy the articles and have a great weekend!

---

China's carbon market to introduce absolute emissions caps from 2027 

On Monday China revealed the timeline for their decarbonization efforts, by 2027 they’ll have implemented absolute emissions caps in select industries, and by 2030 their carbon market will be established. “Carbon emissions allowances” (CEAs) will be distributed to emitters based on gradually tightening benchmarks, and companies that emit above or below their allotment will have to buy more CEAs from the market or sell their excess, respectively. Whether this will work as planned is yet to be seen. Read more here.

No room for the timid: setting Australia’s 2035 emissions target is a daring tightrope act 

In line with the Paris Agreement, Australia is set to release it’s 2035 emissions in the coming weeks. The Climate Change Authority recommends a 65-75% reduction, but even the low end of that range would be halving our emissions. Regardless of the target, execution of the right policy mix is the determining factor. The article details methods such as carbon price, carbon credit reform, streamlining clean energy approvals, biodiversity projects, transportation reform, and extensive fuel excise. Read more here.

Ensuring we are better insured: How AI can improve outcomes for Australians 

A new report by CSIRO and the Insurance Council of Australia (ICA) has investigated the use of AI to alleviate costs. According to the report, a combination of rising flood and bushfire risk, labour shortages, inflation, and higher reinsurance costs have blown up insurance premiums and claims. AI can help Australian insurers reduce operational costs in five key areas: automating claims processing, fraud detection, underwriting, improving natural disaster impact prediction, and operational compliance. Read more here.

Roundtable consensus drives fast-tracking of EPBC reform 

Long awaited reforms to the Environmental Protection and Biodiversity Conservation (EPBC) Act will be delivered within the year after being fast-tracked due to widespread support across industry, indicated by last week’s Economic Roundtable. The Act would establish a Federal Environmental Protection Agency, reduce duplications in project assessment, and introduce more robust environmental protection guidelines, along with efforts to improve transparency in decision-making. Read more here.

---

Carbon emissions per capita 

This data visualization from Our World in Data shows Australia’s emissions from burning fossils fuels, such as coal, oil, and gas, as well as “flaring”, the burning of extra gas during resource extraction, and some industrial processes such as cement and steel production, which release CO₂ during chemical reactions.

---

Connect with Balmoral Group Australia Here